Federal Register / Vol. 86, No. 136 / Tuesday, July 20, 2021 / Notices 38395 

18 15 U.S.C. 78s(b)(2)(B). 

19 17 CFR 200.30–3(a)(12), (59). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). Rule 19b–4(f)(6)(iii) 

requires a self-regulatory organization to give the 

Commission written notice of its intent to file the 

proposed rule change, along with a brief description 

and text of the proposed rule change, at least five 

business days prior to the date of filing of the 

proposed rule change, or such shorter time as 

designated by the Commission. FINRA has satisfied 

this requirement. 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 18 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NYSENAT–2021–14 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSENAT–2021–14. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–NYSENAT–2021–14, and 

should be submitted on or before 

August 10, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–15336 Filed 7–19–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92403; File No. SR–FINRA– 

2021–018] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Make Technical and 

Other Non-Substantive Changes 

Within FINRA Rules 

July 14, 2021. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on July 6, 

2021, the Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by FINRA. FINRA has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA is proposing to make technical 

and other non-substantive changes 

within FINRA rules. 

The text of the proposed rule change 

is available on FINRA’s website at 

http://www.finra.org, at the principal 

office of FINRA and at the 

Commission’s Public Reference Room. 

Below is the text of the proposed rule 

change. Proposed new language is in 

italics; proposed deletions are in 

brackets. 

* * * * * 

Schedule A to the By-Laws of the 

Corporation 

* * * * * 

IM–Section 4(b)(1) and (e) Exemption 

From Certain Registration and 

Membership Application Fees for 

Certain NYSE and NYSE [Alternext 

US]American LLC Member 

Organizations 

NYSE and NYSE [Alternext 

US]American LLC member 

organizations that become members of 

FINRA pursuant to IM–1013–1 and IM– 

1013–2, respectively, shall not be 

assessed the fee set forth in Section 

4(b)(1) to Schedule A of the FINRA ByLaws for the initial Form U4 filed by 

firms for the registration of any 

representative or principal associated 

with the member organization at the 

time a firm submits its application for 

FINRA membership. Such firms also 

shall not be assessed the membership 

application fee set forth in Section 4(e) 

to Schedule A of the FINRA By-Laws. 

However, those firms will otherwise 

remain subject to FINRA’s By-Laws and 

Schedules to By-Laws, including 

Schedule A. 

* * * * * 

FINRA Rules 

* * * * * 

1000. Member Application and 

Associated Person Registration 

* * * * * 

IM–1011–1. Safe Harbor for Business 

Expansions 

This interpretive material concerns 

the types of business expansions that 

will not require a member to submit a 

Rule 1017 application to obtain FINRA’s 

approval of the expansion. This safe 

harbor applies to: (1) Firms that do not 

have a membership agreement, and (2) 

firms that have a membership agreement 

that does not contain a restriction on the 

factors listed below. 

* * * * * 

The safe harbor is not available to any 

member that has disciplinary history. 

For purposes of this Interpretation, 

‘‘disciplinary history’’ means a finding 

of a violation by the member or a 

principal of the member in the past five 

years by the SEC, a self-regulatory 

organization, or a foreign financial 


khammond on DSKJM1Z7X2PROD with NOTICES
38396 Federal Register / Vol. 86, No. 136 / Tuesday, July 20, 2021 / Notices 

4See Securities Exchange Act Release No. 88482 

(March 26, 2020), 85 FR 18299 (April 1, 2020) 

(Order Approving File No. SR–FINRA–2019–030, as 

Modified by Amendment No. 1). FINRA announced 

September 14, 2020 as the effective date of the rule 

change in Regulatory Notice 20–15 (May 2020). 

5FINRA notes that the proposed rule change 

would impact all members, including members that 

have elected to be treated as capital acquisition 

brokers (‘‘CABs’’) and are subject to CAB rules. CAB 

Rule 116 (Application for Approval of Change in 

Ownership, Control, or Business Operations) 

incorporates by reference Rule 1017. 

6See Securities Exchange Act Release No. 85589 

(April 10, 2019), 84 FR 15646 (April 16, 2019) 

(Notice of Filing and Immediate Effectiveness of 

File No. SR–FINRA–2019–009). 

7 In 2014, FINRA adopted NASD Rule 2440 and 

its IMs, without material change, as FINRA Rule 

2121. See Securities Exchange Act Release No. 

72208 (May 21, 2014), 79 FR 30675 (May 28, 2014) 

(Notice of filing and Immediate Effectiveness of File 

No. SR–FINRA–2014–023). 

8NYSE Alternext US LLC is a predecessor entity 

to NYSE American LLC. See Securities Exchange 

Act Release No. 80283 (March 21, 2017), 82 FR 

15244 (March 27, 2017) (Notice of Filing and 

Immediate Effectiveness of File No. SR–NYSEMKT– 

2017–14). 

9 15 U.S.C. 78o–3(b)(6). 

regulatory authority of one or more of 

the following provisions (or a 

comparable foreign provision) or rules 

or regulations thereunder: Violations of 

the types enumerated in Section 

15(b)(4)(E) and Section 15(c) of the 

Exchange Act; Section 17(a) of the 

Securities Act; SEA Rules 10b–5 and 

15g–1 through 15g–9; FINRA Rules 2010 

(only if the finding of a violation is for 

unauthorized trading, churning, 

conversion, material misrepresentations 

or omissions to a customer, 

frontrunning, trading ahead of research 

reports or excessive markups), 2020, 

2111, 2121, 2150, 4330, 3110 (failure to 

supervise only), 5210, and 5230; and 

MSRB Rules G–19, G–30, and G–37(b) 

and (c), and all predecessor NASD rules 

to such FINRA rules. 

* * * * * 

1017. Application for Approval of 

Change in Ownership, Control, or 

Business Operations 

(a) through (k) No Change. 

(l) Removal or Modification of 

Restriction on Department’s Initiative 

The Department shall modify or 

remove a restriction on its own 

initiative if the Department determines 

such action is appropriate in light of the 

considerations set forth in paragraph 

([h]i)(1). The Department shall notify 

the member in writing of the 

Department’s determination and inform 

the member that it may apply for further 

modification or removal of a restriction 

by filing an application under paragraph 

(a). 

(m) No Change. 

* * * * * 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

FINRA included statements concerning 

the purpose of and basis for the 

proposed rule change and discussed any 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. FINRA has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

On March 26, 2020, the Commission 

approved amendments to Rule 1017, 

among other rules, as part of FINRA’s 

efforts to help further address the issue 

of customer recovery of unpaid 

arbitration awards.4 Before the 

amendments to Rule 1017, paragraph 

(h)(1) related to FINRA’s decision on an 

application for continuing FINRA 

membership, and specified some factors 

that create a presumption to deny an 

application. File No. SR–FINRA–2019– 

030 renumbered that paragraph to 

paragraph (i)(1). Currently, Rule 1017(l) 

cross-references to paragraph (h)(1), 

which, as a result of SR–FINRA–2019– 

030, requires an applicant for 

continuing FINRA membership to 

promptly provide FINRA written 

notification of any arbitration claim 

involving the applicant or its associated 

persons that is filed, awarded or 

becomes unpaid before a decision 

constituting final action of FINRA is 

served on the applicant. In File No. SR– 

FINRA–2019–030, FINRA did not 

propose a change to Rule 1017(l) to 

reflect the rule cross-reference change 

from paragraph (h)(1) to paragraph (i)(1). 

With this proposed rule change, FINRA 

is proposing to make this corrective 

non-substantive, technical change to 

Rule 1017(l).5

On April 10, 2019, the Commission 

announced the immediate effectiveness 

of the adoption of the remaining legacy 

NASD rules as FINRA rules in the 

consolidated FINRA rulebook and the 

remaining Incorporated NYSE Rules and 

Incorporated NYSE Rule Interpretations 

in the consolidated FINRA rulebook as 

a separate Temporary Dual FINRA– 

NYSE Member Rules Series.6 Among 

these legacy NASD rules was then 

NASD Interpretative Material (‘‘IM’’)– 

1011–1 (Safe Harbor for Business 

Expansions). In general, this rule 

created a safe harbor for specified 

categories of business expansions, 

subject to certain thresholds and 

conditions, that a member may undergo 

without filing an application for 

continuing membership with FINRA, 

but this safe harbor was unavailable to 

a member with a defined ‘‘disciplinary 

history.’’ Under NASD IM–1011–1, the 

term ‘‘disciplinary history’’ meant a 

finding of a violation by the member or 

a principal of the member in the past 

five years by the SEC, a self-regulatory 

organization, or a foreign financial 

regulatory authority of one or more 

specified provisions that included 

NASD Rule 2440 (Fair Prices and 

Commissions), the predecessor rule to 

FINRA Rule 2121 (Fair Prices and 

Commissions).7 Through File No. SR– 

FINRA–2019–009, FINRA adopted 

NASD IM–1011–1 as FINRA IM–1011– 

1 with the intention of replacing therein 

all references to an NASD rule with its 

corresponding FINRA rule. The 

reference to NASD Rule 2440, or ‘‘2440’’ 

as written in NASD IM–1011–1, was 

inadvertently omitted from the rule text 

presented in Exhibit 4 and Exhibit 5 to 

File No. SR–FINRA–2019–009 and as a 

result, the list of rules for ‘‘disciplinary 

history’’ as they currently appear in 

FINRA IM–1011–1 omits the reference 

to FINRA Rule 2121. With this proposed 

rule change, FINRA is proposing to 

correct this technical error by including 

a reference to ‘‘2121’’ to the sequence of 

FINRA rules defining ‘‘disciplinary 

history’’ under FINRA IM–1011–1. 

Finally, the proposed rule change 

would change the references to ‘‘NYSE 

Alternext US’’ in IM-Section 4(b)(1) and 

(e) of Schedule A to the FINRA By-Laws 

to ‘‘NYSE American.’’ 8

FINRA has filed the proposed rule 

change for immediate effectiveness and 

has requested that the SEC waive the 

requirement that the proposed rule 

change not become operative for 30 days 

after the date of the filing so FINRA can 

implement the proposed rule change 

immediately. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,9 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. The proposed rule 

change will make corrective nonsubstantive, technical updates that 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 86, No. 136 / Tuesday, July 20, 2021 / Notices 38397 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). 12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

FINRA believes will provide greater 

clarity to FINRA rules. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change brings clarity and 

consistency to FINRA rules without 

adding any burden on firms. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 10 and Rule 19b– 

4(f)(6) thereunder.11

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

FINRA–2021–018 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–FINRA–2021–018. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of such 

filing also will be available for 

inspection and copying at the principal 

office of FINRA. All comments received 

will be posted without change. Persons 

submitting comments are cautioned that 

we do not redact or edit personal 

identifying information from comment 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–FINRA– 

2021–018 and should be submitted on 

or before August 10, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–15338 Filed 7–19–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92407; File No. SR– 

CboeBYX–2021–016] 

Self-Regulatory Organizations; Cboe 

BYX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fee Schedule 

July 14, 2021. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on July 1, 

2021, Cboe BYX Exchange, Inc. 

(‘‘Exchange’’ or ‘‘BYX’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

Cboe BYX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BYX’’) proposes to 

amend its Fee Schedule. The text of the 

proposed rule change is provided in 

Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

equities/regulation/rule_filings/byx/), at 

the Exchange’s Office of the Secretary, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 


khammond on DSKJM1Z7X2PROD with NOTICES